LG Energy Solution said on Thursday that it has signed a battery cathode procurement agreement with Chinese cathode maker Changzhou Liyuan New Energy Technology.
The South Korean battery maker will buy lithium iron phosphate (LFP) cathode for batteries aimed at electric vehicles and energy storage systems.
LG Energy Solution said starting this year, it will procure 160,000 metric tonnes of LFP cathode in the next five years from Changzhou Liyuan.
While the South Korean company was mum on the size of the deal LFP cathode out of China currently costs around 13 million won, or US$10,000, per tonne __ this means the pair’s deal is worth over 2 trillion won given the amount of cathode LG Energy Solution plans to procure.
Changzhou Liyuan is based in Nanjing, China, and was founded in May 2021. It has an annual production capacity for lithium cathode of 310,000 metric tonnes.
